Panel application in relation to Advance Property Fund [19/09/2000] The Takeovers Panel

Tuesday, 19 September 2000

PANEL application in relation to Advance Property Fund

The Takeovers Panel advises that it has received an application by Mirvac Funds Ltd (Mirvac) for a declaration of unacceptable circumstances in relation to the affairs of Advance Property Fund (Advance).

Mirvac has also applied for orders under section 657D of the Corporations Law relating to:

  1. the acquisition by St George Bank Limited (St George) of approximately 10% of the issued units in Advance on 26 June, 2000. The price was $1.50 per unit. Mirvac alleges that St George was aware at that time that Mirvac would likely make a takeover bid for Advance units at or above the net asset backing of the units (which was higher than the then market price)
  2. the entry into various agreements on 1 September 2000 by St George and Stockland Property Management Ltd (Stockland) whereby
  1. St George may be required to accept Stockland's offer for units in Advance held by St George,
  2. Stockland may provide property services to St George, and
  3. Advance Asset Management Ltd staff will be offered the opportunity to work with Stockland.

Mirvac alleges that these agreements reduce the competitive nature of the market for control of Advance, and constitute an unfair advantage to St George which other unitholders will not be given an opportunity to share in.

The President of the Panel Mr. Simon McKeon is currently assembling the Panel members to sit on this application.

Nigel Morris
Director, Corporations and Securities Panel
Level 47 Nauru House 80 Collins Street (03) 9655 3501
nigel.morris@takeovers.gov.au